Political resolution and renewed investor optimism is what markets need to recover.
Crypto market dipped again as bearish sentiment continues to dominate investor outlook. The overall market capitalization fell by 1.41% in the past 24 hours, extending a broader 7-day decline of nearly 9%. This downturn coincides with the ongoing U.S. government shutdown, which has now stretched into a record 36 days.
Crypto Market Dips Amid Prolonged U.S. Government Shutdown
The price of Bitcoin fell 1.68% in the past day and lost a key support of around $102,000. According to analysts, the fall was due to bearish technical positions, profit taking by the institutional investors and also the lack of bullish momentum.. Ether had a steeper decline of 2.91% which was fuelled by ETF liquidation and massive outflows.
November 5, Ethereum spot ETFs recorded an outflow of $118.6 million. This was a continuation of the one-month institutional pullback pattern. In the last 30 days, ETF assets of ETH fell to $19.5 billion out of the former 25.8 billion. As such, the price of ETH has dropped by 13% in the last one week.
Other leading altcoins like XRP, Solana (SOL), Cardano (ADA) and Dogecoin price experienced losses in the past 24 hours as well. The market briefly recovered earlier this morning, but fresh selling pressure negated the gains. Analysts fear that until levels of support are met, some more losses could be ahead.
U.S Goverment Shutdown Hits Records 36 Days
The United States government shutdown has entered a record 36th day, marking the longest closure in history. The current stalemate between the Republicans and the democrats has not been resolved yet and hundreds of thousands of federal workers have no pay since October 1.
Although the back pay on workers is legally guaranteed, doubt has arisen following the raising of doubts by the White House on the policy. The Congressional Budget Office cautions the long-term shutdown may drag the U.S. GDP growth by a maximum of two percent in the fourth quarter of 2025 translating to economic losses of between $7and $14billion.
The upheaval is also postponing various legislative initiatives such as the Crypto Market Structure Bill which analysts anticipate it to go through this year not finalized until 2026. The political deadlock is still causing financial markets to tremble.
In conclusion, the the crypto market is under strain with investors responding to the all-time U.S. government shutdown. Constant ambiguity makes people less confident and lowers the chances of recovery. Bitcoin and Ethereum are further falling as institutions outflows. The process of stabilizing the market relies on the need to address political gridlock and rebuild investor confidence in the nearest future.
